Grant Thornton has created example consolidated financial statements and guidance notes to assist businesses to meet International Financial Reporting Standards (IFRS).

The 92-page document Reporting under IFRSs – Example consolidated financial statements 2016 gives examples of financial position, profit or loss, comprehensive income, changes in equity and cash flow consolidated statements, as well as extensive notes on relevant information including summary of accounting policies and contingent liabilities.

IFRS are becoming established as the global standard for the preparation of public company financial statements, and are already mandated for use by more than 100 countries including the European Union and two thirds of G20 nations.

They are regularly updated and Grant Thornton’s example statements contained in Reporting under IFRSs reflect changes up to 31st December this year.

Martin Kneale, a director of Grant Thornton in the Isle of Man, said: ‘The preparation of financial statements in accordance with IFRS is challenging. Each year new Standards and Amendments are published by the International Accounting Standards Board (IASB) with the potential to significantly impact both the presentation of the primary statements and the accompanying disclosures.

‘Grant Thornton, as one of the world’s leading organisations of independent assurance, tax and advisory firms, has extensive expertise in the application of IFRS and through its IFRS team, which develops general guidance that supports its member firms’ commitment to high quality, consistent application of IFRS, has published this document to share expert insights.

‘We hope businesses in the Isle of Man will find these Example Financial Statements and accompanying notes of assistance as they prepare annual reports in accordance with the latest IFRS, and would encourage anyone who might benefit from the publication to get in touch.’

The Example Financial Statements contained in the document are based on the activities and results of Illustrative Corporation and subsidiaries, a fictional consulting, service and retail entity that has been preparing IFRS financial statements for several years. The form and content of IFRS financial statements depend on the activities and transactions of each reporting entity. Grant Thornton’s objective in preparing the Example Financial Statements is to illustrate one possible approach to financial reporting by an entity engaging in transactions that are typical across a range of non-specialist sectors.

Alternative presentations to some of the Example Financial Statements are offered in appendices, but Mr Kneale added that as with any example, the examples do not envisage every possible transaction and cannot therefore be regarded as comprehensive. Management is responsible for the fair presentation of financial statements and therefore may find other approaches more appropriate for its specific circumstances.

If you would like to receive a copy of Reporting under IFRSs – Example consolidated financial statements 2016 or to discuss IFRS, contact Grant Thornton on 639494.

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